MW Memorial Day sales mark down fridges and dishwashers. Too bad many Americans aren't buying them right now.

Andrew Keshner

Many consumers say they're uncomfortable buying big-ticket appliances while gas prices are so high

Gas prices loom large for Americans thinking of buying appliances.

As gas prices heat up, there are growing signs that consumers are cooling on big-ticket purchases such as refrigerators, other major home appliances and furniture.

Earnings reports, polling, foot traffic and spending data point at a mounting reluctance to go big - except, perhaps, for the high-end consumer.

This month, almost half of consumers, 46%, said they were uncomfortable or very uncomfortable buying a large appliance, according to Numerator research. That's up from 41% one month earlier. Meanwhile, foot traffic at home-improvement stores has been down for three straight weeks through early May, according to Placer.ai.

And it's all happening just as Memorial Day sales are supposed to get customers opening their wallets.

While retail sales overall increased in April - partly due to higher gas prices - furniture sales and department-store sales were lower. Sales of electronics and appliances were up 1.4% on a monthly basis and 7.6% higher year over year.

But the April numbers don't tell the full story. "I don't think there's suddenly great news in appliances based on the numbers," said David Silverman, senior director at Fitch Ratings. The retail-sales data may not fully reflect what's happening at big-box retailers where customers go to buy major appliances and home goods, he told MarketWatch.

And it could just be a narrow band of affluent consumers who are upgrading their appliances and home kitchens, while other customers are holding out until they need to replace a broken appliance, Silverman said.

"I think the K-shaped economy is affecting a lot of categories," he said, referring to the diverging finances of upper-income and lower-income Americans. "It's the reason why retail sales across so many categories have held up better than what many of us might have thought."

For example: April spending on durable goods by high-income households was higher year over year, but negative for low- and middle-income households, according to Bank of America data.

April was also a month when many consumers were receiving larger-than-usual tax refunds - or figuring out how to use refund money they received earlier in the filing season.

The Iran war has sent a massive price shock through the world's oil supply. Consumers still need to buy gas to get to work. People have to eat, so they'll have to swallow hard when paying more at the grocery store due to more expensive diesel fuel and fertilizer costs.

But unless a dishwasher or a fridge stops working, buying another one is a discretionary purchase. Big-ticket durable-goods sales matter because they help illustrate how consumers are coping when they have a choice to spend or not.

Last week, Whirlpool shares $(WHR)$ took a bath after an earnings call in which the company reported a steep drop in demand, rivaling what's been seen during recessions. While demand was 7.4% lower in the first quarter, Whirlpool executives said it was 10% lower in March - which also happens to be the month when gas prices soared.

"Duress replacement demand" - meaning that an appliance has broken and must be replaced - was over 60% of the industry and that demand source was "relatively stable," Whirlpool CEO Marc Bitzer said, according to an AlphaSense transcript. "So this gives you a sense about how dramatic the impact on discretionary demand was."

Last month, Electrolux Group (SE:ELUX.B) said its North American business saw a significant drop in market demand. The company's brands include Electrolux and Frigidaire. Representatives for Electrolux and Whirlpool did not immediately reply to requests for comment.

When it comes to heavy appliances, "the business is now strictly need-based, not desirous or impulsive," said Marshal Cohen, chief retail advisor at Circana. That vibe crystallized in the first quarter, when products were already pressured by tariffs, and consumer sentiment has taken a nose dive since then.

Expensive appliances and steeper gas prices are forcing would-be shoppers to ask if they really do need a fridge or dishwasher. "If they have to think about it, the answer is going to be no," Cohen said.

Don't watch for Memorial Day sales - put this on the calendar instead

The softer demand for big-ticket items comes ahead of Memorial Day sales, typically a time to find deals on outdoor furniture, mattresses, appliances and other goods.

At Circana, Cohen is expecting retailers to offer discounts of 20% to 25%. But he's not expecting the mark-downs to entice cautious customers.

If retailers aren't getting the sales figures they're hoping for, they'll have to become "very aggressive" with price cuts in Fourth of July sales, Cohen said. "That's the one to watch for."

Lowe's $(LOW)$ and Home Depot $(HD)$ are scheduled to report earnings next week. Best Buy $(BBY)$ earnings are scheduled for later in the month.

Those corporate earnings reports will shed more light on consumer habits in the face of higher gas costs, Silverman said. There's going to be choppiness in discretionary-goods spending for the rest of the year, he said.

Stock-market returns, housing value growth, wage growth and the job market will all be key variables influencing people's willingness to spend, he said.

Earlier this week, April inflation data showed inflation rates outpacing paycheck growth. There's a good chance inflation will outrun wage growth for months or even the rest of 2026, economists say.

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-Andrew Keshner

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May 22, 2026 15:13 ET (19:13 GMT)

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